NKY's economic growth shows no signs of slowing

Apr. 26, 2013

Gov. Steve Beshear (right) shares a laugh with Bart Pilarski(left), Newly Weds Foods plant manager and Boone County Judge-executive Gary Moore before Beshear announced that the company was going to invest $57 million and create 115 new jobs in Boone County. / The Enquirer/Patrick Reddy

Written by

Amanda VanBenschoten USE ENTERPRISE BYLINE

When the recession hit in 2008, economic development ground to a halt across most of the country. Companies shelved plans to relocate or expand, and many laid off workers instead of hiring new ones.

The Northern Kentucky Tri-County Economic Development Corp. (Tri-ED) spent those lean years developing new programs and lining up prospects – laying the groundwork it said would allow the region to emerge from the recession in a position of strength.

That was the plan, and it appears to be playing out as promised.

On the heels of an exceptionally strong 2012 – Northern Kentucky added nearly 6,000 jobs and $258 million in capital investment from 24 new or expanding companies – economic growth has continued robust during the first four months of this year.

“We’re coming off of a really strong year in 2012. We were 12 and 12 (new and expanding companies), where we typically do 22 projects per year. Capital investment numbers were the fourth highest in Tri-ED’s 26-year history,” said Karen Finan, senior vice president at Tri-ED. “But to me what was so important was that the pipeline of new deals that we knew would happen was very strong. And that has spilled over into this year.”

In April alone, five projects totaling $68.5 million in capital investment and more than 250 new jobs were announced in Boone, Campbell and Kenton counties.

The rate of growth is an extremely encouraging sign, along with the diversity among the five new and growing companies. They include a sensor technology firm, a flavor and powdered food manufacturer, an air cargo company headquarters, a carbon brake producer and a food service packager.

Other significant projects announced in 2013 include the arrival of a glass bottle manufacturer to Covington, a batter and bread-crumb food producer to Erlanger, and the expansion of a Florence freight logistics firm. And Amazon.com is looking to hire 450 temporary workers at its Hebron warehouse.

Momentum won’t let up any time soon.

“I would expect the rest of this year to continue on a strong path, given what we see in the pipeline right now,” Finan said.

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There are also other, less direct, signs that the Northern Kentucky economy is not only rebounding, but on the verge of thriving once more.

It’s hard to overestimate the impact of last week’s announcement that Toyota will begin manufacturing Lexus sedans at its Georgetown plant, a $531 million investment that will create 750 new jobs.

The plant already employs residents of Pendleton and Grant counties, who live an hour or less from Georgetown.

And the new manufacturing line is likely to also generate new growth in the region, given the location of Toyota’s North American manufacturing headquarters in Erlanger.

Finan, who spoke with The Enquirer Wednesday from a gathering of real-estate professionals in Boston, said the expansion is major news in national economic-development circles.

“People in Boston are talking about it,” she said. “They know where Kentucky is. And they know that the North American headquarters of Toyota is in Northern Kentucky.”

There are plenty of encouraging signs closer to home. Finan cited the recent activity in Covington, including the planned Hotel Covington and the reopening of the Jeff Ruby’s Waterfront restaurant.

“That really paints a picture of a returning, strong economy,” she said.

Unemployment is also down in Boone, Campbell and Kenton counties, both year-over-year and from February to March 2013, according to data released by the state Thursday.

When it comes to economic development, it can sometimes be hard to separate the smoke and mirrors from the reality on the ground. The numbers don’t lie, though, and so far, they point to a healthy 2013 for Northern Kentucky. ■